Numsa finances in disarray
SA’s biggest trade union, the National Union of Metalworkers of SA (Numsa), is facing a serious internal revolt and its finances are in disarray.
The union’s unaudited financial statements, seen by Business Day, show that the union has been operating on a deficit budget for the past two years, forcing it to dip into its strike fund to pay salaries.
The strike fund is a strategic reserve meant to provide workers with alternative income during prolonged strikes. Numsa also owes the South African Revenue Service R20m in unpaid tax dating back to 2011. Union members allege that a R500m reserve fund established by the previous leadership has been raided.
In his secretariat report to the Numsa central committee meeting in Johannesburg this week, general secretary Irvin Jim said the union may have to retrench some staff. Its head office and regional offices would also have to be restructured.
However, a more pressing challenge, which has rendered the union unstable, is the conflict that has engulfed it. Senior members of the union and
former leaders, who spoke to Business Day on condition of anonymity, have accused Jim of ruling the union with an iron fist, suspending and dismissing officials and leaders who question his decisions.
Numsa acting spokesman Phakamile Hlubi said Numsa leaders were still in the central committee meeting and could not comment due to time constraints, but sources aligned to Jim have dismissed the allegations against him and have played down the union’s financial strain.
Relations between Jim and his deputy, Karl Cloete, are also said to be at a low due to mistrust dating from Numsa’s 2016 congress. It is understood Jim grew paranoid after a recording of a caucus plotting his downfall at the congress was leaked to him. He then allegedly solicited the services of a lawyer to investigate Cloete and others who were suspected of conspiring against him.
This week, Jim suspended the head of the union’s secretariat, Suraya Jawodeen. Sources said she was suspected of authoring an open letter critical of Jim’s leadership that was distributed to union members. The letter describes how Jim had allowed businesses including the Numsa Investment Company to dictate its agenda .
“The secretariat report is … like the report of a university department or an NGO writing to a funder,” the letter said.